12 January 2018
| Natalie Bannerman
59% of global revenues comes from just 20 Metro areas, according to findings by Synergy Research Group.
According to the findings the top five Metros areas are
Washington, New York, Tokyo, London, and Shanghai, which
account for 26% of the worldwide market. And the remaining 15
Metro markets account for account for another third of the
worldwide market. Of the 20, ten are in North America, four in
the EMEA region and six in the APAC region.
"While we are seeing reasonably robust growth across all
major metros and market segments, one number that jumps out is
the wholesale growth rate in the Washington/Northern Virginia
metro area. "It is by far the largest wholesale market in the
world and for it to be growing at 20% is particularly
noteworthy." said John Dinsdale, a chief analyst and research
director at Synergy Research Group.
Other findings reveal that across the 20 largest metros,
retail colocation accounted for 72% of Q3 revenues and 28% for
wholesale. In addition, Equinix was the market leader by
revenue in eight of the top 20 metros in Q3 of 2017. Digital
Realty would be the leader in five more if a quarter of the
acquired DuPont Fabros operations were included in its numbers.
Other colocation operators that were frequently featured in the
top 20 metros include: 21Vianet, @Tokyo, China Telecom,
CoreSite, CyrusOne, Global Switch, Interxion, KDDI, NTT,
SingTel and QTS.
Over the last four quarters colocation revenue growth in the
top five metros beat the rest of the world by two percentage
points, so the worldwide market is slowly being concentrated
more in those key metro areas. The top 20 metros with
annualised growth rates of 15% or more were Shanghai, Beijing,
Hong Kong and Washington/Northern Virginia. All four saw strong
growth in both the retail and wholesale segments of the market,
though growth in wholesale tended to be higher. Chicago also
saw very strong growth in wholesale revenues, though in this
metro retail colocation growth was relatively weak.
"The broader picture is that data center outsourcing
and cloud services continue to drive the colocation market, and
the geographic distribution of the world’s
corporations is focusing the colocation market on a small
number of major metro areas," added Dinsdale.
Synergy Research Group recently released data on the growth
rates of cloud market segments. According to its data cloud
market segments grew by 24% to $180billon in 2017. Included in
the report is six key cloud services and infrastructure market
segments which is IaaS & PaaS, Hosted private cloud,
Enterprise SaaS, UCaaS, Public cloud and Private cloud.
Synergy Research Group,